If you run a small business, you may not need an accountant to handle your taxes for you. In many cases you can simply fill out taxes and go through your small list of profits and costs, and may not need much more work than that. However, not all small businesses and their taxes are that simple and there are times when it's good to leave this task to professional accounting services. While you don't want to pay for services that you don't really need, note when it's good to have a professional accountant or accounting services manage your small business taxes.
You own real property
If you run a business from home, you may simply deduct certain costs including a portion of your rent, utilities, and the like. You might also deduct the cost of new equipment such as a laptop or phone you use just for business. However, when you own real property, meaning a building from which you work or machinery and equipment for your landscaping or contracting business, you want to consider professional accounting services. This is because you may not understand how to depreciate those costs over time and, in turn, may be missing out on some deductions and a reduction to your tax bill. If you own anything other than basic office equipment for running your business, have a professional manage your taxes to ensure you're not overpaying your tax bill every year.
When you're ready to merge with another company
Merging with another company can increase your customer base and your profits overall, but you may need to adjust your accounting methods and way of managing your taxes when you do this. A new accounting method may be better for claiming deductions and managing expenses through the year, and may reduce the new tax bill you may face once you expand through your merger.
When your tax bill suddenly shifts
If you see a sudden shift in your tax bill, meaning it's either much higher or much lower than it is usually, it can be good to hire an accountant or accounting services. It may be that your business has seen a large change and you haven't adjusted your accounting methods as you should, or the tax laws have changed and you may or may not have kept up. In any case, an accountant can note if you need to change the way you keep your books or are overlooking something in how you file your taxes so that you can ensure your tax returns are accurate.Share
6 September 2016
Good day. I’m Linda and I run two family businesses — building contractor and aged care staff agency. It is quite a feat to juggle schedules and keep track of finances. I have become quite an expert with business management software. I have also learnt the vital importance of having good accountants to give advice and keep bookwork up-to-date. Prior to starting our family businesses, I honestly thought accountants existed to organise tax returns. I now understand that their jobs are much more complex and they can help your business prosper. I started this blog to highlight the numerous ways I’ve found that accountants can contribute to financial success. Please browse through the posts and I hope you find something useful within.